Interaction between population and environmental degradation

Abstract

The present study investigates the long-run interrelationship among the demographic variables and environmental indicators by using the Johansen-Juselius cointegration technique and error correction model to determine the short-run dynamics of the system related to time series data for Pakistan economy, over the period 1972-2001. The paper finds the existence of a cointegrating vector, indicating a valid long-run relationship among the variables. Moreover, demographic variables have a significant effect in the short-run on AL but their short-run coefficients have an insignificant impact on CO2 emission. The empirical evidence clearly support that high population growth rates have a deleterious impact on environment. The policy implication thereof is to enhance the need of lowering population in Pakistan which seems to be a burden on the existing resources and a challenge to the environment.